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Membership vs subscription: Which one should you build?

Hey there,

Ever feel like "membership" and "subscription" are used interchangeably, and you're just nodding along pretending you know the difference?

A lot of people struggle to articulate the difference but it's all about community.

Here's the simplest way to think about it:

Subscription: Your audience wants your product or service and is perfectly content hearing from just you.

Membership: Your audience wants your product or service AND wants to belong to a community around it.

That's it. The product might be similar, but the experience is fundamentally different.

Real-world examples

Subscriptions (product/service focused):

Memberships (community focused):

Quick gut check: Which model does your audience actually want - or are you building what YOU think they want?

How to figure out what your people actually need

The Transformation vs. Task Test:

If your offering creates a big transformation (struggling to find clients → booked solid, or gardening newbie → backyard farmer), your customers will crave community. They want to connect with others on the same journey.

If your offering helps them complete a task (shaving legs, solving puzzles, cooking dinner), a subscription is probably enough. They don't need community – they just need the thing.

Ask them directly:

The fastest way to know? Actually ask. Send a survey asking how important community is to their decision. Or interview 3-5 ideal clients about whether they'd value connecting with others.

Spy on your competitors:

Look at similar offerings in your space. What are they building? Read the reviews - are people wishing for more community connection, or are they happy with just the product?

The grey area that works for many businesses

Can't decide? There's a middle ground - subscriptions with light community touches:

  • Social engagement: YouTube or Instagram account where subscribers feel comfortable chatting in the comments
  • User-generated content: Ways for people to share photos/results with you, which you then share with your broader audience via email marketing or social posts
  • Optional gatherings: Local meetups or online watch parties for those who want connection (but don't require it)

This gives community-seekers a place to connect without overwhelming people who just want the product.

Start simple, evolve intentionally

Here's what I tell every client: Start with your MVP (minimum viable product). You can always add features as you grow and - this is crucial - as people ask for them.

Don't build a robust community platform if your audience just wants razors delivered monthly. But also don't skip community if your people are going through a transformation and desperately want to connect with others who get it.

The worst mistake? Building what you think is cool instead of what your audience actually needs.

Figure out which model serves your specific audience, then build that. Your retention rates will thank you.

Stay curious!

P.S. Still unsure which direction to go? Let's chat! I help business owners design their minimum viable products in my business focus sessions. You leave with an idea that supports your audience AND is sustainable for you, a roadmap of the steps to build it, and a list of action steps to take over the next month.

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